MINUTES OF A REGULAR MEETING
of the
BOARD OF DIRECTORS
OF THE
MONTECITO WATER DISTRICT
held at the
DISTRICT BOARD ROOM

583 SAN YSIDRO ROAD, MONTECITO, CALIFORNIA
at 2:00 P.M. on TUESDAY, AUGUST 20, 2002

CALL TO ORDER AND ROLL CALL

The meeting was called to order by President Abel at 2:00 p.m.
Those in attendance were:

CONSENT CALENDAR            

President Abel requested that the minutes of the July 16, 2002 Board Meeting be removed from the consent calendar for revision. Director Wilson requested that the Water Production Report and the Water Sales Report be removed from the consent calendar for discussion.  Director Drewry requested that the Report on the Distribution System and Fire Flow Upgrade Program, Water Availability Charge and 1998A Bond Project Funds be removed from the consent calendar for discussion.  After Board discussion, it was moved by Director Drewry, seconded by Director Wilson and unanimously carried to approve the minutes of the July 16, 2002 Board Meeting as amended and the Consent Calendar as presented.

A.                 Upper Toro Canyon Main Replacement Project notice of Completion

President Abel introduced this item.  After Board discussion it was moved by Director Edmonston, seconded by Director Drewry and unanimously carried to approve the execution and recording of the Notice of Completion for the Upper Toro Canyon Main Replacement Project.

B.                 Riven Rock Park water Main Extension Project—Phase ii notice of completion

President Abel introduced the item. Mr. Adjarian answered Directors’ questions.  After Board discussion it was moved by Director Edmonston, seconded by Director Drewry and unanimously carried to approve the execution and recording of the Notice of Completion for the Riven Rock Park Water Main Extension Project, Phase II.

C.                Riven Rock Park Water Main Extension Project—Phase ii project cost summary

Mr. Adjarian and Mr. Mosby presented the final project cost summary on this project and answered Directors’ questions.  After Board discussion, it was moved by Director Wilson, seconded by Director Drewry and unanimously carried to authorize the release of the letter and cost summary to Riven Rock MWC and refund the funds remaining on deposit.

D.                Completion of Seaview MWC Facilities Demolition/ Project Cost Summary

Mr. Adjarian and Mr. Mosby presented the staff report on this item and answered Directors’ questions.  After Board discussion, it was moved by Director Wison, seconded by Director Edmonston, and unanimously carried to authorize the release of the letter and cost summary to Mr. and Mrs. Tobey.

E.                 MFPD/MWD Joint Fire Hydrant Replacement Program FY 2001-02 Update

Mr. Adjarian presented the staff report on this item and, along with Mr. Mosby, answered Directors’ questions.

F.                 Submittal of Prospective MWD Projects for Possible Funding via CAlifornia Water Bond Initiative Coalition

Mr. Adjarian presented the staff report on this item and answered Directors’ questions.

G.                Ortega Reservoir Project update

Mr. Adjarian updated the Board on the subject project and answered Directors’ questions.  All Directors received an updated schedule analysis for the Project.

DIRECTOR AND STAFF MEETING REPORTS                                              

A.                 CACHUMA CONSERVATION RELEASE BOARD MEETING OF July 22, 2002 

1.                  State Water Resources Control Board Hearing Technical Issues Update.

2.                  Member Unit Legal Issues Update.

 President Abel reported on the subject meeting.  She called the Board’s attention to the final item in the Legal Issues Update, the proposal to close the Long Beach National Marine Fisheries Service office and put the State of California under the Seattle office.

 President Abel also announced that she had been re-elected as Chair of CCRB.

B.                 CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF JUly 22, 2002

 President Abel reported on the subject meeting where a revised staff salary parity study was approved and COMB salaries were adjusted accordingly for the coming year.  President Abel did informally raise the issue of assessing member agencies for projects which had not yet been approved by the COMB board, but did not receive support on the issue from the other member agencies.

 President Abel announced that she had been re-elected as Chair of COMB. 

C.                CENTRAL COAST WATER AUTHORITY BOARD MEETING OF JUly 2002

 Director Puddicombe was absent.  He will update the Board on CCWA activities at the September Board meeting.  Director Drewry will attend the August meeting of CCWA as alternate for Director Puddicombe.

 D.                SANTA BARBARA COUNTY SPECIAL DISTRICTS  
                         ASSOCIATION MEETING OF JUly 2002

Director Wilson reported on the subject meeting where LAFCO and the new Municipal Service Review requirement were discussed.

E.                 ACWA Retreat and Board Meeting of July 25-26, 2002, Modesto

President Abel reported on the subject meeting and commented on items from the ACWA retreat which were included in the Board’s agenda packets.

F.                 ACWA REgion 5 Membership Reception and Meeting of September 29-30, 2002, Cambria

 President Abel encouraged Board members to attend the upcoming meeting.

COMMITTEE REPORTS /RECOMMENDATIONS                                           

 A.                 OPERATIONS COMMITTEE

 There was no report.  The next scheduled Operations Committee meeting is September 11.

B.                 FINANCE COMMITTEE

Director Wilson reported on the activities of the Finance Committee.

 C.                PUBLIC INFORMATION COMMITTEE

President Abel reported on the activities of the Public Information Committee and plans for the next newsletter.

GENERAL MANAGER’S REPORT                                                         

 A.                 PENDING ISSUES Update

Mr. Adjarian updated the Board on the status of the State Water Project Exchange Agreement with Dudley Ridge and introduced a proposed timeline for updating MWD Ordinance No. 82.

B.                 Oral Reminder: Board Workshop, September 10, 9 a.m. – Noon

Mr. Adjarian briefly reminded the Board of this upcoming workshop.

C.                Oral Reminder: Change in MWD Board Meeting Date, November 26, 2002

President Abel reminded the Board of the change in the MWD Board’s November meeting date, due to the ACWA Fall Conference.

LEGAL MATTERS                                                                                            

A.                 DISTRICT COUNSEL REPORT; Board 
             Information

1.  Oral Update: USBR/Summerland Distribution System Title Transfer
2.  Oral Update: Brown Act/Proposed Water Facility Threat Exemption Legislation

Mr. Wullbrandt reported on the progress of the transfer of the title of the Summerland Distribution system to MWD from the USBR.  He also updated the Board on the legislation to amend the Brown Act to exempt meetings dealing with threats to water facilities.

B.                 recess to closed session pursuant to government code section 54956.9 (a); conference with legal counsel —existing litigation: ocean view estates homeowners association v montecito water district, et al.; case no. 1067147

C.                recess to closed session pursuant to government code section 54956.9 (a); conference with legal counsel —existing litigation: Patrick M. Nesbitt, et al v montecito water district, et al.; case no. 01093694

The Board adjourned to closed session at 4:15 to consider the above items.

The Board reconvened in open session at 4:45.  President Abel reported that no action was taken.

AGENDA ITEM REQUEST

There were no requests from Directors for items other than regular agenda items for next regular Board meeting scheduled for September 17, 2002.

ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 4:52 p.m.

Approved:

________________________
Jan E. Abel, President

Attest:

_________________________
Frederick J. Adjarian, Secretary